Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › Research › peer-review
Social Optimality in International Trade Under Monopolistic Competition. / Bykadorov, Igor.
Mathematical Optimization Theory and Operations Research - 18th International Conference, MOTOR 2019, Revised Selected Papers. ed. / Igor Bykadorov; Vitaly Strusevich; Tatiana Tchemisova. Springer Gabler, 2019. p. 163-177 (Communications in Computer and Information Science; Vol. 1090 CCIS).Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › Research › peer-review
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TY - GEN
T1 - Social Optimality in International Trade Under Monopolistic Competition
AU - Bykadorov, Igor
N1 - Publisher Copyright: © 2019, Springer Nature Switzerland AG. Copyright: Copyright 2019 Elsevier B.V., All rights reserved.
PY - 2019/1/1
Y1 - 2019/1/1
N2 - We study the homogeneous model of international trade under the monopolistic competition of producers. The utility function assumes additive separable. The transport costs are of “iceberg types”. It is known that, in the situation of market equilibrium, under linear production costs, the social welfare, as a function of transport costs, decreases near free trade while (counter-intuitively!) increases near total autarky. Instead, we study the situation of social optimality. We show that total welfare decreases. We restrict our study by the case of two countries, “big” and “small”. Moreover, we study two important “limited” situations: near free trade and near total autarky. We show that near free trade, the welfare in the small country decreases; as to the big country, we find examples when (1) the welfare decreases and (2) the welfare (counter-intuitively!) increases. Besides, in the autarky case, we describe the situations of decreasing/increasing of welfare in each country.
AB - We study the homogeneous model of international trade under the monopolistic competition of producers. The utility function assumes additive separable. The transport costs are of “iceberg types”. It is known that, in the situation of market equilibrium, under linear production costs, the social welfare, as a function of transport costs, decreases near free trade while (counter-intuitively!) increases near total autarky. Instead, we study the situation of social optimality. We show that total welfare decreases. We restrict our study by the case of two countries, “big” and “small”. Moreover, we study two important “limited” situations: near free trade and near total autarky. We show that near free trade, the welfare in the small country decreases; as to the big country, we find examples when (1) the welfare decreases and (2) the welfare (counter-intuitively!) increases. Besides, in the autarky case, we describe the situations of decreasing/increasing of welfare in each country.
KW - Comparative Statics
KW - International trade
KW - Monopolistic competition
KW - Social optimality
UR - http://www.scopus.com/inward/record.url?scp=85076141105&partnerID=8YFLogxK
U2 - 10.1007/978-3-030-33394-2_13
DO - 10.1007/978-3-030-33394-2_13
M3 - Conference contribution
AN - SCOPUS:85076141105
SN - 9783030333935
T3 - Communications in Computer and Information Science
SP - 163
EP - 177
BT - Mathematical Optimization Theory and Operations Research - 18th International Conference, MOTOR 2019, Revised Selected Papers
A2 - Bykadorov, Igor
A2 - Strusevich, Vitaly
A2 - Tchemisova, Tatiana
PB - Springer Gabler
T2 - 18th International Conference on Mathematical Optimization Theory and Operations Research, MOTOR 2019
Y2 - 8 July 2019 through 12 July 2019
ER -
ID: 22999519